Motilal Oswal Financial Services began coverage of edtech company PhysicsWallah on 4 September 2026 with a Buy rating and a ₹200 target price, implying roughly 66% upside. The stock rose as much as 6% to an intraday high of ₹127.80 on the BSE.
The upside figure is measured against the stock’s level of about ₹120 before Friday’s move, not against the intraday price. At around ₹127, PhysicsWallah’s market capitalisation stood near ₹36,769 crore.
How the brokerage arrived at ₹200
Motilal Oswal has valued PhysicsWallah’s businesses separately rather than as one block.
The offline centres business has been valued at 15 times its estimated FY 2027-28 EV/EBITDA. EV/EBITDA compares a company’s total value to its operating profit before interest, tax, depreciation and amortisation — a common way to price a business that is not yet consistently profitable at the net level.
The brokerage applied a lower multiple to the offline arm because it sees the segment as execution-heavy, slower to mature and thinner on margins.
The remaining segments were valued at one time estimated FY 2027-28 EV/Sales. Adding back the company’s cash reserves produced the ₹200 per share figure.
The online business is doing the heavy lifting in this call
Motilal Oswal’s core argument is that India’s education market which it sizes at ₹15–16 lakh crore is still barely online.
According to the brokerage, online penetration is around 20% even in flagship categories like JEE and NEET coaching. In newer segments such as foundation courses, state board preparation and government exam coaching, it is below 1%.
That gap is what the brokerage treats as the runway. It expects PhysicsWallah’s online revenue to compound at about 28% a year between FY 2025-26 and FY 2029-30, driven by more paying users, entry into fresh categories and AI-led monetisation.
The customer acquisition angle matters here. PhysicsWallah’s YouTube channels together carry more than 100 million subscribers, which the brokerage says lets the company pull in prospective students at structurally lower cost than rivals, then convert them into paid online, hybrid or offline learners.
Motilal Oswal also expects the pre-Ind AS EBITDA margin operating margin calculated before certain lease accounting adjustments to move from about 26% in FY 2025-26 to roughly 30% by FY 2027-28, helped by cost efficiencies. It pegs the company’s revenue growth at a compound annual rate of around 74% between FY 2022-23 and FY 2025-26.
These are the brokerage’s own estimates, not company guidance.
Where PhysicsWallah’s own numbers stand
The June 2026 quarter showed revenue growth alongside a narrower loss.
| Consolidated figure | Q1 FY 2026-27 | Q1 FY 2025-26 |
|---|---|---|
| Revenue | ₹1,054 crore | ₹847.1 crore |
| Net loss | ₹77.6 crore | ₹120.5 crore |
Revenue rose about 24.4% year-on-year. The net loss narrowed from ₹120.5 crore to ₹77.6 crore, per the company’s exchange filing.
The company remains loss-making at the net level, which is central to why brokerages are valuing it on operating metrics rather than earnings.
A block deal also hit the counter
Business Standard reported that a block deal involving about 41.4 lakh shares went through on the same session. The buyers and sellers were not identified at the time of reporting.
This is separate from the much larger transaction on 26 August 2026, when Lightspeed Opportunity Fund II LP sold its entire 1.61% stake 4,66,98,120 shares at an average of ₹117.72 per share, worth ₹549.73 crore. That was a full exit by the venture investor, and shares were picked up by a spread of institutional buyers.
Anyone tracking these transactions in real time needs shares held in a demat account, since block deals are settled and reflected through the same depository system that holds every investor’s equity holdings.
The stock is still below its listing-day high
PhysicsWallah listed on the NSE and BSE on 18 November 2025 after a ₹3,480 crore IPO priced at ₹109 per share. The issue was subscribed 1.81 times.
The stock listed at ₹143.10, a 31.3% premium, and touched ₹162.05 on debut day. It later fell to a 52-week low of ₹77.72 in early March 2026 before recovering.
At around ₹127, the share is roughly 17% above its IPO price but still short of its listing-day peak.
What to watch from here
Three things will decide whether the online-led thesis holds up: whether paid user growth in newer categories actually converts, whether offline centre utilisation improves enough to lift margins, and whether the quarterly loss keeps narrowing.
Brokerage targets are estimates with a 12-month horizon and can be revised. Investors following the stock through an online trading platform can track price movement, delivery volumes and any further block deals as they are reported by the exchanges.
Investments in the securities market are subject to market risks. Read all related documents carefully before investing. This article is for information purposes only and is not investment advice.
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